Home > Economy > South Korea's Industrial Output Grows Most In 7 Years In January
Economy

South Korea's Industrial Output Grows Most In 7 Years In January

By March 2, 2017 at 12:05 am
South Korea's industrial output jumped for three consecutive months in January, a sign of continued recovery of exports. (Photo : Getty Images)

South Korea's industrial output jumped for three consecutive months in January, its fastest pace in over seven years, fueled by an increase in output in the country's key semiconductor and electronics in a sign of continued recovery of exports, according to government data released Thursday.

Manufacturing output climbed 3.3 percent in January from the previous month, according to Statistics Korea, exceeding forecasts for a 0.3 percent gain and a reversal of a 0.5 percent contraction in December.

January's production growth marked the fastest pace since a 3.7 percent increase in September 2009 and offers further evidence of a rebound in global demand with exports posting strong gains last month.

Output increased 1.7 percent in January from the same month a year ago, gaining for the third month in a row, after a revised 4.2 percent increase last December. That figure surpassed analysts' forecast of a 2.6 percent on-year increase.

Production was boosted by the 8.8 percent on-month increase in semiconductors in January, and the 6.7 percent on-month rise during the cited period, the data showed.

Thursday's report also showed production in the service sector rose 2.7 percent in January from the same month last year, with a 0.5 percent increase from the previous month.

Retail sales climbed 4 percent on-year in the first month of 2017, but they dropped 2.2 percent from the previous month, which is the third consecutive on-month drop since last November.

Across all industries, output jumped 3.6 percent in January from the previous year and gained 1 percent from the previous month, the data showed.

In month-on-month terms, industrial production has been mostly volatile in the past year, as exports struggled to gain traction.

External conditions, however, began to improve since late last year, resulting in the fastest growth in shipments in February and helping South Korea's export-reliant economy. The Bank of Korea maintained its policy rate at an all-time low 1.25 percent since June 2016 in an effort to spur the economy. 

Like Us on Facebook